That means that reading public library loans of ePub eBooks dipped in Adobe DRM will work on the iPad!

UPDATE: Bad parsing by me of what is in the Kobo Blog post:

You should definitely be able to add in unencrypted, unDRM’d stuff. It would be even better if you could get DRM’d books from other vendors in. (We’re part way there now. Side-load PDFs, un-DRM’d ePubs into our Desktop Reader (Oops! Not yet! Working on it. — MT), Kobo eReader, iPad and iPhone apps. Add Overdrive library books on the Kobo eReader. More to come…)